£65k perm salary , £350 daily rate - Worth moving into contracting ?

[GazCol]

IMO it's not worth the gamble/lottery of contracting just to increase your take home by a relatively small amount.

Despite the difference in potential take home pay, it is still a small amount when you factor in holidays, sick pay, bonuses, employer pension contributions and actually being guaranteed to be paid.

There's too many variables to be able to advise you at this point (I don't believe you even told us what you do?) to even begin to make sense of whether or not it's a viable financial decision, never mind a viable personal one.

[ChimpMaster]

When I jumped into the big bad world of independence I had decided that the business would have to generate double in net profit compared to my take-home salary. This allows for loss of all benefits and time when there is no work for the business.

In your situation this would mean a daily rate of ~£550. I would not settle for £350 in your position.

All in all, you need to draw a line at which you will personally be happy.

[northernladuk]

+1 to the above. Don't forget to have a look at your permie situation. If you can get a job the next level up with a new company that has better benefits you could easily add another 10k+ to your gross. Permies often don't think about switching jobs to better their financial situation.

[NorthWestPerm2Contr]

65k permie is a very good salary, if there are additional benefits to it then there is little point going to £350/day unless you are like me and can't stand the idea of being a permie.

At 65k permie I'd start to consider contracting for aprox £450/day but the exact amount depends on the benefits you have as a permie. Other thing is I haven't taken any proper holidays in over 4 years contracting, while that means a lot more money it also means a lot less chilling. Contracting is a business and if you want to act like a business then you have to be there to deliver.

Also note that I left a permie salary of 27k to go into contracting, had I been on 65k I might have been a let less inclined to take that jump, it was poverty that drove me into being a greedy contractor!

[ELBBUBKUNPS]

I do not know.

[kal]

65k permie is a very good salary, if there are additional benefits to it then there is little point going to £350/day unless you are like me and can't stand the idea of being a permie.

At 65k permie I'd start to consider contracting for aprox £450/day but the exact amount depends on the benefits you have as a permie. Other thing is I haven't taken any proper holidays in over 4 years contracting, while that means a lot more money it also means a lot less chilling. Contracting is a business and if you want to act like a business then you have to be there to deliver.

Seriously?, life's too short man. I make sure I have at least 2 weeks away with the family every year and some UK based days out, long weekends etc (based around public holidays). Its all very well earning all that cash but you can't take it with you

[NorthWestPerm2Contr]

Seriously?, life's too short man. I make sure I have at least 2 weeks away with the family every year and some UK based days out, long weekends etc (based around public holidays). Its all very well earning all that cash but you can't take it with you

I'm 30 years old and I figure this is my chance to work hard to set my family up for life. When I have a 100k warchest and a few properties then I can think about starting to relax. As it is currently only 8 months warchest and 1 house .

[northernladuk]

I'm 30 years old and I figure this is my chance to work hard to set my family up for life. When I have a 100k warchest and a few properties then I can think about starting to relax. As it is currently only 8 months warchest and 1 house .

Nothing worse than poor people..

[Fred Bloggs]

I think NLUK nails it. If the OP fancies a change and he's on £65k, then he should seriously consider looking for a job nerxt rung up the ladder for £75k plus car, medical, share options etc.... I wouldn't jump to a job on £350 a day from £65k permie.

[NorthWestPerm2Contr]

Nothing worse than poor people..

Poverty is a good motivator